Tuesday, February 9, 2010

Increasing Returns of Scale and the Internet


The internet and it's resources are becoming more and more useful. Both organizations and individual users find a need to be online. As more users begin to upload content to the internet (via youtube, facebook, wikipedia, etc) the internet becomes increasingly more useful to other users. Although this is true, as illustrated by the above comic, there is not very much accountability on the internet.

For businesses, it is essential to have some sort of founding site where consumers can find information, and marketing on social sites is probably efficient. Today I was browsing apartments in Nashville online. I was using google maps to read reviews, compare opinions, and find relative prices. An apartment complex that has established a good online community where I can read reviews, view floor plans, and get information quickly has a much higher chance of getting on my list than one that simply has a phone number to call.

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